Crocs Could Run Up 30%

Investors socked the shoe maker's stock last week after quarterly earnings disappointed. However, we spy opportunity.

Last Wednesday, shoe maker Crocs (ticker: CROX) surprised investors, when it reported that second-quarter earnings fell well below what management had guided. Earnings came in at 40 cents a share, below guidance of 60 to 63 cents a share. The stock tumbled 20% the following day.

Management attributed much of the weakness to a late spring in the U.S. and Europe, which led to lower sales for its shoes than expected. As a result of the...